Greif Bros Corporation (GEF)
Working capital turnover
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,149,200 | 5,273,800 | 5,465,400 | 5,766,100 | 6,085,200 | 6,322,000 | 6,413,400 | 6,278,700 | 5,977,000 | 5,559,600 | 5,156,700 | 4,746,200 | 4,565,300 | 4,532,800 | 4,593,500 | 4,764,000 | 4,800,700 | 4,585,700 | 4,334,200 | 4,093,900 |
| Total current assets | US$ in thousands | 1,389,300 | 1,369,100 | 1,443,400 | 1,481,700 | 1,471,500 | 1,499,400 | 1,647,700 | 1,616,800 | 1,704,000 | 1,664,100 | 1,566,900 | 1,382,700 | 1,346,300 | 1,302,800 | 1,305,900 | 1,247,900 | 1,307,600 | 1,249,000 | 1,341,800 | 1,353,100 |
| Total current liabilities | US$ in thousands | 882,700 | 939,300 | 951,200 | 937,400 | 880,500 | 1,047,900 | 1,116,000 | 1,121,900 | 1,280,500 | 1,314,100 | 1,241,700 | 1,109,900 | 990,500 | 1,000,100 | 914,900 | 840,500 | 824,200 | 825,400 | 837,000 | 809,400 |
| Working capital turnover | 10.16 | 12.27 | 11.10 | 10.59 | 10.30 | 14.00 | 12.06 | 12.69 | 14.11 | 15.88 | 15.86 | 17.40 | 12.83 | 14.97 | 11.75 | 11.69 | 9.93 | 10.83 | 8.59 | 7.53 |
January 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,149,200K ÷ ($1,389,300K – $882,700K)
= 10.16
Working capital turnover is a financial ratio that measures a company's efficiency in managing its working capital to generate sales revenue. A higher working capital turnover indicates that the company is effectively using its working capital to support operations and generate revenue.
Based on the data provided for Greif Inc, the working capital turnover has exhibited fluctuations over the quarters. In Q1 2024, the working capital turnover was 10.17, which was lower compared to the previous quarter at 12.14 in Q4 2023. This suggests a slight decrease in efficiency in managing working capital to generate sales revenue.
Overall, Greif Inc has maintained a relatively consistent range of working capital turnover over the quarters, with values fluctuating between 10.17 and 14.06. This indicates that the company has been consistently efficient in utilizing its working capital to support its operations and generate revenue, although there have been some variations in efficiency from quarter to quarter.
It is important for Greif Inc to continue monitoring its working capital turnover and aim to maintain efficiency in managing its working capital to support sustainable business operations and achieve its financial goals.